There seems to be a belief by some people that:
1) The money that is currently put into negative-yielding Treasury bonds needs a new "home" and
2) That new "home" is likely to be bitcoin
Can someone explain this in more detail. Why are Treasury bonds being compared to bitcoin? I understand the rationale behind point 1, but don't really see why a large portion of it will move into bitcoin. I can see it moving away from Treasury bonds, but I also see it moving to stocks, real estate, gold, silver, other commodities, art, pokemon cards etc.
Well the risk appetite is different for different segment of people. So people who are very conservative in nature, invest in Treasury bonds. It is consider as one of the safest investment of all time where government is the guarantor of the money. There is no chance to loose your money. This kind of investment was attractive when the interest rate was high.
On the other hand, bitcoin is a very risky investment. It can fetch you unmatched amount of profit, but at the same time, you can loose your money. But people who have a stable source of income, can take risks and invest in bitcoin. That's why with the rise of global income for individuals, we are seeing more money pouring into cryptos than traditional investments. And we are all seeing a boom in crypto price.